Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
US/Canada September PE contracts settle up 5¢/lb
US/Canada September PE contracts settle up 5¢/lb
Houston, 9 October (Argus) — September contracts in the US/Canada polyethylene (PE) market largely settled higher by 5¢/lb during the week, as rising export prices helped to support higher domestic prices. There were some reports that certain producers had invoiced only a 3¢/lb increase for the month, but the majority of producers pushed through the full 5¢/lb increase to the wider market. Some buyers are now pressing for producers to grant non-market adjustments that will take those 5¢/lb increases down to 3¢/lb, but so far, any non-market activity is believed to be not widespread. The increases came as crude oil prices moved above $100/bl in mid-September on supply concerns out of the Middle East due to the US-Iran war. The increases in global energy prices raised feedstock prices for global PE, which allowed producers to push US export prices higher. Even as crude prices have eased from those earlier highs, US export prices have been able to maintain their increases, which helped to sustain the increase in domestic contracts. Export prices are continuing to rise this week. Between 2-9 September, US export prices rose by 4-8¢/lb on an fas Houston basis, depending upon grade. High density polyethylene (HDPE) high molecular weight film has seen the highest increase of 8¢/lb over the period due to tightness for that particular grade, while linear low density polyethylene (LLDPE) butene has seen a lesser increase of 4¢/lb over the period due to more plentiful supply. Some domestic buyers are convinced that they will be able to push producers to give back some of the 5¢/lb increase, arguing that fundamentals do not support the full increase, as domestic demand is not improving. "Everyone I have talked to on my side of the industry said the 3¢/lb increase is fine, but the 5¢/lb is excessive," one US PE buyer said. "The thought is that producers will have to give back 2¢/lb to the biggest buyers or risk having a down settlement in October." But other buyers are not convinced that producers will be willing to lower prices, given that the export market continues to support higher prices. "I'm not seeing anyone back off of the nickel for September now," another US PE buyer said. Traders said they see a real possibility that export prices will continue to move higher in the coming weeks. While many global buyers have backed away from the market with the higher prices this week, one trader said he expects them to return once it becomes apparent that prices will not move lower. "People are not jumping on prices now. Everyone is chasing two-weeks ago price levels," the trader said. "But that resistance is being broken as time goes by and they see that manufacturers are very firm on pricing." For October, US and Canadian producers have announced increases of 7¢/lb for contracts. Buyers say they see little to support additional increases after the September increase, but other market participants said it will depend on what happens with export prices over the course of the month. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil's PE imports drop in September
Brazil's PE imports drop in September
Sao Paulo, 9 October (Argus) — Brazil's polyethylene (PE) imports in August fell by 44pc from a year earlier, with most products coming from the US. Imports totaled around 35,880 metric tonnes (t) during the month, down from 64,649t in September 2025, according to data from trade ministry Mdic. September imports were worth $56.6mn, a 21pc drop from a year prior. The US was still Brazil's largest PE supplier in September, sending 15,524t of the resin. But volumes fell by nearly 64pc from a year before. The US' import share fell by around 22.9 percentage points from September 2025 to nearly 43.3pc. Argentina was Brazil's second-largest PE supplier in the month, shipping nearly 9,476t, a 31pc decrease from a year prior. That was 17.7pc of Brazil's total imports in the month, up from 15.8pc a year before. The third-largest PE supplier into Brazil in September was China, with 2,274t, more than double from a year prior. China accounted for 3.3pc of Brazil's total imports in the month. Spain, Netherlands and Canada also followed. Spain sent 2,131t, up from 446t a year prior, while the Netherlands sent nearly 1,576t. Canada sent 1,172t. By Mariana Funchal Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil's September PP exports rise by 34pc
Brazil's September PP exports rise by 34pc
Sao Paulo, 9 October (Argus) — Brazil's polypropylene (PP) September exports rose by 34pc from a year earlier, with Argentina as the largest export destination. Brazil exported nearly 22,457 metric tonnes (t) of PP in September, up from 16,793t in the same month a year earlier. Revenues from PP exports totaled $29.9mn, up by 47.8pc from a year prior, trade ministry Mdic data show. Argentina received most of Brazil's PP exports in September, at 4,501t, a 7.8pc decrease from a year prior. Peru followed with 3,862t and Colombia received 3,547t. Brazil also imported 51,297t of PP in the month, down by 18pc from 62,445t in September 2025. Import costs rose by 1.9pc to $79.1mn. China was Brazil's largest PP supplier in September, sending around 10,828t, a tenfold increase from a year prior. Egypt was second, exporting 9,282t of the resin to Brazil, a 6.8pc increase from a year prior. Argentina followed, sending 8,344t, a 16.5pc decrease from a year before. By Mariana Funchal Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Braskem restructuring faces court setback
Braskem restructuring faces court setback
Sao Paulo, 25 September (Argus) — A Sao Paulo court dealt a setback to petrochemical producer Braskem's debt overhaul, lifting creditor protections for two financing subsidiaries, blocking additional support for Mexican affiliate Braskem Idesa's Chapter 11 process and appointing a judicial administrator. In a 24 September ruling, the 2nd Bankruptcy and Judicial Reorganization Court of Sao Paulo rejected the debtors' attempt to calculate creditor support through substantive consolidation, requiring support levels to be assessed individually for each entity. The Brazilian court found that Braskem Netherlands and Braskem America Finance failed to meet the minimum one-third creditor support threshold required under Brazil's bankruptcy law. Creditor support reached 20.4pc for Braskem Netherlands and 13.2pc for Braskem America Finance, below the statutory 33.3pc requirement. As a result, the stay period was lifted for the two entities, and the debtors were ordered to demonstrate compliance within 15 days or propose alternative measures. The ruling also addressed Braskem's planned support for Braskem Idesa, which recently sought Chapter 11 protection in the US Bankruptcy Court for the Southern District of Texas. An ad hoc group of creditors argued that Braskem and affiliated entities have committed up to $800mn to the Mexican process, including a $415mn debtor-in-possession financing facility, a $71mn equity contribution and additional obligations tied to future ownership interests. The court granted a precautionary injunction preventing Braskem and the restructuring entities from making further extraordinary payments, transfers, financing disbursements or equity contributions linked to the Mexican process pending further review. The judge said the transactions could materially affect the financial position of the group's debt overhaul. The decision came one day after Shine I FIP launched a mandatory tender offer for minority shares of Braskem, one of the final regulatory steps following the fund's acquisition of control of the company. The offer does not affect control of Braskem but is intended to complete the ownership transition. Braskem must submit within 15 days a report detailing the structure, funding sources and expected impacts of the Braskem Idesa transaction. The court also requested information from controlling shareholders Petroleo Brasileiro (Petrobras) and Shine I Fundo de Investimento em Participacoes (Shine I FIP) regarding corporate approvals. Separately, the court appointed ACFB Administracao Judicial as judicial administrator, citing the complexity of a case involving six entities and roughly $10.9bn in liabilities. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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